Why Digital Literacy is the Cornerstone of AI in Education

Artificial intelligence has moved from the periphery of possibility to the centre of everyday life, reshaping industries, societies, and how we engage with the world around us  – even where we don’t know about it. From tailoring our news feeds to aiding complex medical diagnoses, AI is influencing every aspect of how we live and work. For young people, AI will define the industries they work in, the problems they solve, and the opportunities they can access. But while its transformative potential is vast, so too are its risks – particularly for those already on the wrong side of the digital divide.

The challenge facing the UK education sector is clear: how do we ensure that every young person is equipped not just to survive but to thrive in an AI-driven world? The solution lies in schools teaching the skills that foster both understanding and responsibility, ensuring no child is excluded from the opportunities AI offers while also addressing the potential harms of this rapidly advancing technology. 

According to the World Economic Forum’s Future of Jobs Report 2023, nearly half – 44 per cent – of all core skills are expected to change by 2027, driven by advancements in AI and other technologies. Job roles that did not exist a decade ago – AI prompt engineers, algorithmic ethicists, or data storytellers – are becoming pivotal. Yet for students currently in classrooms across the UK, the journey from basic digital literacy to these future-ready skills remains fraught with inequality.

The Challenge

One in five children in the UK already lives in digital poverty, unable to access the right devices or connectivity needed to participate in the digital world. Without intervention, AI will exacerbate these divides, cementing disparities in education and employment opportunities. Addressing this challenge demands a reimagining of the curriculum – one that weaves AI education into every subject, demystifies its complexities, and makes its tools accessible to all.

What does that look like in practice? First, it means teaching students to understand the data that drives AI. Data literacy – the ability to interpret, question, and critique the datasets that fuel algorithms – is a cornerstone skill for any AI-savvy citizen. Students need to learn how biases in data can skew outputs, why platforms generate misleading “hallucinations,” how to assess the reliability of AI-generated content – and the importance of using AI-generated content to augment and support, rather than simply copy from.

Equally important is fostering critical thinking. While AI can assist with creativity or research, it can also mislead, plagiarise, or perpetuate harm. Students must learn to discern fact from fiction, recognising when AI-generated content is useful versus when it is flawed or malicious. This is not just about avoiding pitfalls – it is about empowering young people to use AI responsibly, whether that means creating ethical algorithms or deploying generative tools in ways that solve real-world problems.

Of course, practical skills must complement these analytical ones. Coding provides a window into how AI systems operate, while hands-on experience with generative AI tools like ChatGPT or image-based platforms fosters familiarity with their applications and limitations. For today’s students, who will graduate into an AI-saturated workplace, these are no longer optional skills – they are prerequisites.

Teachers need time and training to deliver AI literacy effectively. Recent research by the Digital Poverty Alliance underscores the gap in teacher readiness. Many educators already struggle with fundamental digital skills, let alone the intricacies of teaching about algorithms, deepfakes, or responsible AI use. Without targeted support, the burden of preparing students for the AI era risks falling unevenly on overstretched staff or relying solely on someone with a passion for the topic.

A lack of national coordination risks creating a postcode lottery where some students receive comprehensive AI education while others are left behind. Every school, regardless of location or budget, must be equipped to teach unified, age-appropriate AI skills, with a coherent policy. This is not just about fairness – it is about ensuring mobility, so students can transition smoothly from school to university or the workplace without encountering vastly different expectations around AI use.

Partnerships with tech companies and non-profits can provide schools with access to AI tools and expertise, levelling the playing field for students who might otherwise lack these resources. Yet these partnerships must be carefully managed. Schools need safe, secure platforms that protect students’ data, not a free-for-all that leaves them exposed to commercial exploitation. Funding for schools to provide one-to-one devices for disadvantaged pupils, allowing them to learn about and use AI both in the classroom and at home, is critical.

Building a Fair Future

Without intervention, AI risks widening existing inequalities, locking millions out of opportunities to thrive. But done right, AI education can become a powerful equaliser, bridging divides and creating a generation of young people who are not just consumers of technology but its creators, its critics, and its champions.

The Digital Poverty Alliance has long advocated for policies that address these inequalities at their root. From funding for devices to teacher training initiatives, there are concrete steps the UK can take now to prepare for a future where AI literacy is as fundamental as reading and writing. Policymakers, educators, and industry leaders must work together to embed AI skills into the national curriculum, ensuring no young person is left behind in this rapidly changing world.

This is not just a technological challenge – it is a societal one. The choices we make today about how we teach AI will shape not only the opportunities available to the next generation but also the kind of society we want to build: one where technology empowers rather than excludes, where opportunity is shared, and where every young person has the tools they need to thrive.

If education is the great equaliser, AI skills may be the sharpest tool we have to ensure equality in the digital age. It is time for the UK to step up to the challenge, ensuring that the promise of AI is realised for all, not just the few.

By Elizabeth Anderson, CEO of the Digital Poverty Alliance